In securitisation programs where independent correspondents originate loans, the lender is taken to have constructive knowledge of the correspondent's knowledge, including knowledge that borrowers have not provided financial information and that the mortgage purchase application is false. A lender who proceeds with a loan despite being on notice that its own lending procedures have failed, without making its own reasonable inquiry into the borrower's capacity to repay, may have the loan reopened as unjust under s 76 of the National Credit Code — even where the borrowers themselves bear considerable responsibility for their predicament. The determination of unjustness under s 76 is an evaluative judgment that an appellate court may reassess on the primary facts found at trial.
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